EXLP Leasing LLC and EES Leasing LLC v. Webb County Appraisal District and United Independent School District
2015 Tex. App. LEXIS 5594
Tex. App.2015Background
- Exterran, as appellant, challenges a trial court order dismissing its tax dispute for lack of jurisdiction.
- Exterran owned 113 compressors located in Webb County as of Jan 1, 2012, part of its South Texas Region inventory.
- Tax years 2008–2011: compressors were taxable business personal property and taxes were paid to Webb County Appraisal District.
- Tax year 2012: Exterran paid taxes to Victoria County under a 2012 amendment to §23.1241(a), claiming the compressors were heavy equipment dealer inventory rather than Webb County property.
- Webb County issued a 2012 tax assessment and Exterran protested; United Independent School District intervened arguing dismissal for lack of jurisdiction under §42.08(b); the trial court dismissed, leading to this appeal.
- The issue centers on whether §42.08(b) requires any prepayment to vest jurisdiction, given Exterran disputed the entire tax amount.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether §42.08(b) requires prepayment when the entire tax amount is in dispute | Exterran argues no prepayment is required since the lesser amount is zero | Webb County argues some prepayment is necessary to vest jurisdiction | No prepayment required; jurisdiction vests with zero lesser amount; dismissal reversed and remanded |
Key Cases Cited
- Central Appraisal Dist. v. Lall, 924 S.W.2d 686 (Tex. 1996) (upholding constitutionality of §42.08(b) and noting open courts implications when amount conceded is zero)
- Pratt & Whitney Canada, Inc. v. McLennan Cnty. Appraisal Dist., 927 S.W.2d 641 (Tex. App.—Waco 1996) (entire tax amount in dispute permits prepayment of zero dollars under §42.08(b))
- U. Lawrence Boze’ & Assocs., P.C. v. Harris Cnty. Appraisal Dist., 368 S.W.3d 17 (Tex. App.—Houston [1st Dist.] 2011) (liberal construction of tax statutes in taxpayer’s favor; strict against taxing authority)
- TracFone Wireless, Inc. v. Comm’n on State Emergency Commc’ns, 397 S.W.3d 173 (Tex. 2013) (tax statutes liberally construed in taxpayer’s favor; open courts considerations)